Income Taxes (Tables)

6 Months Ended

Jun. 30, 2021

Schedule of Components of Income Tax Expense (Benefit)

The provision (benefit) for income taxes for the three and six months ended June 30, 2021 and 2020 consists of the following:

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2021			2020			2021			2020
	(Dollars in thousands)
Federal:
Current	$	2,496		$	119		$	3,056		$	277
Deferred		(969	)		(93	)		(933	)		(369	)
		1,527			26			2,123			(92	)
State and local:
Current		323			56			391			114
Deferred		391			(566	)		701			(1,256	)
		714			(510	)		1,092			(1,142	)
Valuation allowance		(327	)		444			(569	)		985
Provision (benefit) for income taxes	$	1,914		$	(40	)	$	2,646		$	(249	)

Schedule of Reconciliation of Differences Between Federal Income Tax Rate and Total Income Tax Expense

Total income tax expense differed from the amounts computed by applying the U.S. federal income tax rate of 21% for the three and six months ended June 30, 2021 and 2020, respectively, to income before income taxes as a result of the following:

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2021			2020			2021			2020
	(Dollars in thousands)
Income tax, at federal rate	$	1,646		$	(128	)	$	2,316		$	(427	)
State and local tax, net of federal taxes		564			(402	)		863			(902	)
Valuation allowance, net of the federal benefit		(327	)		444			(569	)		985
Other		31			46			36			95
	$	1,914		$	(40	)	$	2,646		$	(249	)

Schedule of Significant Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at June 30, 2021 and December 31, 2020 are presented below:

	June 30,		December 31,
	2021		2020
	(Dollars in thousands)
Deferred tax assets:
Allowance for loan losses	$	5,173	$	4,846
Deferred loan fees		2,063		—
Interest on nonaccrual loans		243		792
Unrealized loss on available-for-sale securities		11		—
Amortization of intangible assets		60		70
Deferred rent payable		127		120
Depreciation of premises and equipment		—		79
Net operating losses		3,004		3,990
Charitable contribution carryforward		854		1,366
Compensation and benefits		636		326
Other		171		78
Total gross deferred tax assets		12,342		11,667
Deferred tax liabilities:
Depreciation of premises and equipment		908		—
Deferred loan fees		—		475
Unrealized gain on available-for-sale securities		—		25
Other		38		39
Total gross deferred tax liabilities		946		539
Valuation allowance		5,903		6,472
Net deferred tax assets	$	5,493	$	4,656